Abstract
We investigate the interaction of pro-social motivation and wages in pro-social organizations with a novel subject pool, 1700 students destined for the private and public sectors in Indonesia, using a measure of pro-social motivation that exactly matches the mission of the organization. Three novel conclusions emerge. Consistent with a common, but untested, assumption in the theoretical literature, workers with greater pro-social motivation exert higher real effort. However, high pay attracts less pro-socially motivated individuals. Furthermore, we also test whether a real world pro-social organization (the Indonesian Ministry of Finance) attracts pro-socially motivated workers. We find that prospective entrants into the Indonesian Ministry of Finance exhibit higher levels of pro-social motivation than a comparable sample of general workers.
Original language | English |
---|---|
Pages (from-to) | 139-164 |
Number of pages | 26 |
Journal | European Economic Review |
Volume | 83 |
Early online date | 15 Dec 2015 |
DOIs | |
Publication status | Published - Apr 2016 |
Keywords
- Public sector reform
- Civil service
- Intrinsic motivation
- Extrinsic motivation
- Performance
Profiles
-
Sheheryar Banuri
- School of Economics - Associate Professor in Economics
- Centre for Behavioural and Experimental Social Science - Member
- Behavioural Economics - Member
- Behavioural and Experimental Development Economics - Member
- Environment, Resources and Conflict - Member
Person: Research Group Member, Research Centre Member, Academic, Teaching & Research